Outlook for 2012:
Growth and innovation
Ad spending will be up in the range of 4 percent
By Diego Vasquez
Dec 19, 2011
Despite the disappointing economic developments that threw the recovery of many media categories off course this year, out of home ad revenue continued to climb as clients began to embrace alternative media more enthusiastically and social media became a key element to campaigns.
In the coming year out of home will keep up that slow but steady growth, as digital options receive increasing attention and the glut of political ads on television pushes advertisers toward other media.
Of course that continued growth will depend largely on the economy.
Buyers say that
the sluggish recovery overshadowed all other out-of-home issues this year.
"I think the biggest development in 2011 was actually the economy," says Dana Burleson, senior vice president at Wilkins Media Co.
"I believe continued pressure on advertising budgets forced agencies to do a hard reevaluation of all media types, which allowed out-of-home to be looked at with fresh eyes. I think that efficiency had to be approached more creatively and OOH was a big beneficiary.
"I also think that an increasing focus on low-cost 'buzz' allowed OOH to showcase one of its best attributes."
The forecast for 2012 is rosy for out of home when compared to other media.
ZenithOptimedia, the London-based media agency, predicts that ad revenue will be up 4.3 percent, after rising 5.5 percent in 2011. UBS senior analyst John Janedis pegs 2012 ad spending growth at 3.5 percent.
OOH is clearly in better position than other media, including newspapers, magazines and direct mail, all of which will see spending slide in the coming year.
Buyers say that the 2012 presidential election should give out of home a boost. When inventory is tight on TV and radio, OOH picks up advertisers who can't get onto a broadcast media schedule.
"If early 2012 planning is any indication, OOH inventories in the top markets will be exceptionally tight throughout the year, especially with the pressure that political advertising will put on demand," Burleson says.
Like other media, the real future of OOH lies in digital platforms, which are expanding rapidly. The number of digital billboards in the United States has grown to 2,400 this year, according to the Outdoor Advertising Association of America.
Though that's just a fraction of the 400,000 total billboards in the U.S., the number has been growing steadily, and these days the billboards face fewer challenges than they did a decade ago, when lawmakers worried that they could distract drivers and lead to accidents.
Digital networks in locations such as doctors' offices and restaurants are also growing quickly.
Buyers say that in addition to looking for digital elements to add to campaigns, advertisers are becoming more opening to buzz-generating alternative media stunts such as setting up a
faux marathon finish line outside a subway station to draw attention to an upcoming race.
"There seems to be an increased focus on buzz, especially in the entertainment category," Burleson says.
"But even within the consumer packaged goods category, it seems that advertisers are beginning to trust that the psychology of creating a sort of positive cognitive dissonance within a consumer's daily journey has as much or more impact than a standard advertising campaign."
Finally, social media will become a necessary element for every out-of-home campaign this year, be it a billboard, a poster or an alternative media stunt.
"It is the single most efficient way to extend the scope and the life of an OOH campaign at little to no cost," Burleson says.
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